MarketAxess Announces Monthly Volume Statistics for December 2022

MarketAxess Holdings Inc. (Nasdaq: MKTX), the operator of a leading electronic trading platform for fixed-income securities, and the provider of market data and post-trade services for the global fixed-income markets, today announced monthly trading volume for December 2022 and preliminary variable transaction fees per million (“FPM”) for the month of December and the quarter ended December 31, 2022.1

Chris Concannon, President and COO of MarketAxess commented: “We delivered another strong month with a 27% increase in total credit ADV, driven by a 26% increase in U.S. high-grade ADV and record estimated market share across high-yield, emerging markets, Eurobonds and municipals. These market share gains reflect the powerful benefits of our unique all-to-all liquidity pool.  

Open Trading estimated price improvement4 was approximately $79 million in December and average estimated price improvement per million was approximately $1,042. For full-year 2022, estimated price improvement was approximately $946 million, 65% above the prior year.

The strong share gains we delivered this year reflect the increasing strength of our franchise, driven by the investments we have made to expand our product and geographic foundation. We believe that these strong results and the favorable backdrop for fixed income markets in 2023 create a very attractive operating environment for our model in the new year.” 

Select December 2022 highlights*

  • Strong December with 27% increase in total credit average daily volume (“ADV”) to $10.6 billion.
  • Record 22.8% (+140 bps) composite corporate bond estimated market share,2 up from 21.4%.
  • 26% increase in U.S. high-grade ADV to $5.1 billion with estimated market share of 23.4%. Estimated U.S. high-grade TRACE market ADV increased 27%.
  • 25% increase in U.S. high-yield ADV to $1.6 billion with record estimated market share of 21.4% (+310 bps), up from 18.3%.
  • Emerging markets ADV of $2.1 billion, down slightly; flat excluding the impact of foreign currency fluctuations. Emerging markets market volumes down 22%. Record 32.9% estimated market share of FINRA TRACE-reportable emerging markets trading volume.3
  • Record 19.6% (+520 bps) estimated Eurobonds market share, up from 14.4%. $1.4 billion in Eurobonds ADV, representing an increase of 56%; up approximately 63% excluding the impact of foreign currency fluctuations.
  • $473 million in municipal bond ADV with record estimated market share of 5.5% (+330 bps).
  • 38% of total credit trading volume was executed via Open Trading®, up from 36%. Estimated price improvement4 via Open Trading was approximately $79 million, and average estimated price improvement per million was $1,042.
  • The preliminary FPM for total credit for December was $165, compared to $163 in November. The increase in U.S. high-grade average fees per million in December, driven in part by an increase in duration during the month, was partially offset by lower average fees per million in other credit products due to product mix.1

*All comparisons versus December 2021 unless otherwise noted.

Table 1: December 2022 trading ADV

CREDIT RATES
$ in millions

(unaudited)
US/UK

Trading Days5
Total

ADV
Total

Credit
High-Grade High-Yield Emerging

Markets
Eurobonds Municipal

Bonds
Total

Rates
US Govt.

Bonds
Agcy./Other

Govt. Bonds
Dec-22

21/20

$

27,191

 

$

10,613

 

$

5,069

 

$

1,557

 

$

2,148

 

$

1,350

 

$

473

 

$

16,578

 

$

16,235

 

$

343

 

Dec-21

22/21

$

24,505

 

$

8,386

 

$

4,024

 

$

1,248

 

$

2,151

 

$

867

 

$

83

 

$

16,119

 

$

15,882

 

$

237

 

% Change

 

11

%

 

27

%

 

26

%

 

25

%

 

(0

%)

 

56

%

 

470

%

 

3

%

 

2

%

 

45

%

Table 1A: December 2022 estimated market share

CREDIT RATES


(unaudited)
High-Grade High-Yield High-Grade/High-

Yield Combined
Eurobonds Composite

Corporate Bond2
Municipals US Govt.

Bonds
Dec-22

23.4

%

21.4

%

22.9

%

19.6

%

22.8

%

5.5

%

3.1

%

Dec-21

23.6

%

18.3

%

22.1

%

14.4

%

21.4

%

2.2

%

2.8

%

Bps Change (20) bps +310 bps +80 bps +520 bps +140 bps +330 bps +30 bps

Table 1B: 4Q22 trading ADV

CREDIT RATES
$ in millions

(unaudited)
US/UK

Trading Days5
Total

ADV
Total

Credit
High-Grade High-Yield Emerging

Markets
Eurobonds Municipal

Bonds
Total

Rates
US Govt.

Bonds
Agcy./Other

Govt. Bonds

4Q22

61/63

$

30,424

 

$

12,042

 

$

5,487

 

$

1,805

 

$

2,666

 

$

1,569

 

$

500

 

$

18,382

 

$

18,026

 

$

356

 

4Q21

62/64

$

29,158

 

$

9,711

 

$

4,482

 

$

1,355

 

$

2,590

 

$

1,169

 

$

107

 

$

19,447

 

$

19,087

 

$

360

 

% Change

 

4

%

 

24

%

 

22

%

 

33

%

 

3

%

 

34

%

 

367

%

 

(5

%)

 

(6

%)

 

(1

%)

Table 1C: 4Q22 estimated market share

CREDIT RATES


(unaudited)

High-Grade

High-Yield

High-Grade/High-

Yield Combined

Eurobonds

Composite

Corporate Bond2

Municipals

US Govt.

Bonds

4Q22

21.1

%

20.5

%

20.9

%

18.2

%

20.9

%

5.0

%

3.1

%

4Q21

21.2

%

15.5

%

19.5

%

13.2

%

18.8

%

2.4

%

2.9

%

Bps Change (10) bps +500 bps +140 bps +500 bps +210 bps +260 bps +20 bps

Select 4Q22 highlights**

  • 24% increase in total credit ADV to $12.0 billion.
  • Record 20.9% (+210 bps) composite corporate bond estimated market share,2 up from 18.8%.
  • 22% increase in U.S. high-grade ADV to $5.5 billion with estimated market share of 21.1%. Estimated U.S. high-grade TRACE market ADV increased 23%.
  • Record U.S. high-yield estimated market share of 20.5% (+500 bps), up from 15.5%, on ADV of $1.8 billion, representing an increase of 33%.
  • Emerging markets ADV of $2.7 billion, up 3%; up approximately 5% excluding the impact of foreign currency fluctuations. Emerging markets market volumes down 22%. Record 31.5% estimated market share of FINRA TRACE-reportable emerging markets trading volume.3
  • Record 18.2% (+500 bps) Eurobonds estimated market share, up from 13.2% on record ADV of $1.6 billion, representing an increase of 34%; up approximately 49% excluding the impact of foreign currency fluctuations.
  • Record 5.0% (+260 bps) municipal bond estimated market share on record ADV of $500 million.
  • Record 38% of total credit trading volume was executed via Open Trading, up from 36% in the prior year. Estimated price improvement4 via Open Trading was approximately $246 million, and average estimated price improvement per million was $988.
  • Record $31 billion in portfolio trading volume, up from $13 billion in 4Q21, and $25 billion in 3Q22.
  • 3.1% (+20 bps) U.S. Treasury estimated market share, up from 2.9%.
  • The preliminary FPM for total credit for the quarter was $164.0, compared to $165.6 in 3Q22. The preliminary FPM for total rates for the quarter was $4.10.1

**All comparisons versus 4Q21 unless otherwise noted.

1 The FPM for total credit and total rates for the month of December and quarter ended December 31, 2022 are preliminary and may be revised in subsequent updates and public filings. The Company undertakes no obligation to update any fee information in future press releases.

2 Composite corporate bond estimated market share is defined as combined estimated market share across U.S. high-grade (derived from FINRA TRACE reported data), U.S. high-yield (derived from FINRA TRACE reported data), emerging markets (derived from FINRA TRACE-reportable emerging markets volume, principally U.S. dollar denominated corporates) and Eurobonds (derived from MarketAxess TRAX data which is currently estimated to represent approximately 70% of the total European market) product areas.

3 Emerging markets estimated market share calculated using FINRA TRACE-reportable emerging markets trading volume, principally U.S. dollar denominated corporates.

4 Estimated price improvement consists of estimated liquidity taker price improvement (defined as the difference between the winning price and the best disclosed dealer cover price) and estimated liquidity provider price improvement (defined as the difference between the winning price and then current Composite+ bid or offer level, offer if the provider is buying, bid if provider is selling) at the time of the inquiry.

5 The number of U.S. trading days is based on the SIFMA holiday recommendation calendar and the number of U.K. trading days is based primarily on the U.K. Bank holiday schedule.

Reported MarketAxess volume in all product categories includes only fully electronic trading volume. MarketAxess trading volumes, TRACE reported volumes and MarketAxess Post-Trade processed volumes are available on the Company’s website at investor.marketaxess.com/volume.

Cautionary Note Regarding Forward-Looking Statements

This press release may contain forward-looking statements, including statements about the outlook and prospects for Company and industry growth, as well as statements about the Company’s future financial and operating performance. These and other statements that relate to future results and events are based on MarketAxess’ current expectations. The Company’s actual results in future periods may differ materially from those currently expected or desired because of a number of risks and uncertainties, including: global economic, political and market factors; risks relating to the COVID-19 pandemic, including the possible effects of the economic conditions worldwide resulting from the COVID-19 pandemic; adverse effects as a result of climate change or other ESG risks that could affect our reputation; the level of trading volume transacted on the MarketAxess platform; the rapidly evolving nature of the electronic financial services industry; the level and intensity of competition in the fixed-income electronic trading industry and the pricing pressures that may result; reputational or credibility risks related to our data products and index business; the variability of our growth rate; our ability to introduce new fee plans and our clients’ response; our ability to attract clients or adapt our technology and marketing strategy to new markets; risks related to our growing international operations; our dependence on our broker-dealer clients; the loss of any of our significant institutional investor clients; our exposure to risks resulting from non-performance by counterparties to transactions executed between our clients in which we act as an intermediary in matched principal trades; risks related to self-clearing; the effect of rapid market or technological changes on us and the users of our technology; our dependence on third-party suppliers for key products and services; our ability to successfully maintain the integrity of our trading platform and our response to system failures, capacity constraints and business interruptions; the occurrence of design defects, errors, failures or delays with our platforms; our vulnerability to cyber security risks; our actual or perceived failure to comply with privacy and data protection laws; our ability to protect our intellectual property rights or technology and defend against intellectual property infringement or other claims; our ability to enter into strategic alliances and to acquire other businesses and successfully integrate them with our business; our dependence on our management team and our ability to attract and retain talent; limitations on our flexibility because we operate in a highly regulated industry; the increasing government regulation of us and our clients; risks related to the U.K.’s exit from the European Union; our exposure to costs and penalties related to our extensive regulation; our risks of litigation and securities laws liability; our future capital needs and our ability to obtain capital when needed; limitations on our operating flexibility contained in our credit agreement; and other factors. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. More information about these and other factors affecting MarketAxess’ business and prospects is contained in MarketAxess’ periodic filings with the Securities and Exchange Commission and can be accessed at www.marketaxess.com.

About MarketAxess

MarketAxess (Nasdaq: MKTX) operates a leading electronic trading platform that delivers greater trading efficiency, a diversified pool of liquidity and significant cost savings to institutional investors and broker-dealers across the global fixed-income markets. Over 1,900 firms leverage MarketAxess’ patented technology to efficiently trade fixed-income securities. MarketAxess’ award-winning Open Trading® marketplace is widely regarded as the preferred all-to-all trading solution in the global credit markets. Founded in 2000, MarketAxess connects a robust network of market participants through the full trading lifecycle, including automated trading solutions, intelligent data products and a range of post-trade services. Learn more at www.marketaxess.com and on Twitter @MarketAxess.

Table 2: Trading Volume Detail

 

 

 

 

 

Month Ended December 31,

 

 

In millions (unaudited)

 

 

2022

 

 

2021

 

 

% Change

 

 

 

 

 

Volume

 

 

ADV

 

 

Volume

 

 

 

ADV

 

 

Volume

 

 

ADV

 

 

Credit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

High-grade

 

 

$

106,454

 

 

$

5,069

 

 

$

88,523

 

 

 

$

4,024

 

 

 

20.3

 

%

 

26.0

 

%

High-yield

 

 

 

32,694

 

 

 

1,557

 

 

 

27,466

 

 

 

 

1,248

 

 

 

19.0

 

 

 

24.8

 

 

Emerging markets

 

 

 

45,101

 

 

 

2,148

 

 

 

47,324

 

 

 

 

2,151

 

 

 

(4.7

)

 

 

(0.1

)

 

Eurobonds

 

 

 

27,007

 

 

 

1,350

 

 

 

18,199

 

 

 

 

867

 

 

 

48.4

 

 

 

55.7

 

 

Other credit1

 

 

 

10,274

 

 

 

489

 

 

 

2,102

 

 

 

 

96

 

 

 

388.8

 

 

 

409.4

 

 

Total credit trading2

 

 

 

221,530

 

 

 

10,613

 

 

 

183,614

 

 

 

 

8,386

 

 

 

20.6

 

 

 

26.6

 

 

Rates

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government Bonds3

 

 

 

340,932

 

 

 

16,235

 

 

 

349,408

 

 

 

 

15,882

 

 

 

(2.4

)

 

 

2.2

 

 

Agency and other government bonds2

 

 

 

7,018

 

 

 

343

 

 

 

5,103

 

 

 

 

237

 

 

 

37.5

 

 

 

44.7

 

 

Total rates trading

 

 

 

347,950

 

 

 

16,578

 

 

 

354,511

 

 

 

 

16,119

 

 

 

(1.9

)

 

 

2.8

 

 

Total trading

 

 

$

569,480

 

 

$

27,191

 

 

$

538,125

 

 

 

$

24,505

 

 

 

5.8

 

 

 

11.0

 

 

Number of U.S. Trading Days4

 

 

 

 

 

 

21

 

 

 

 

 

 

 

22

 

 

 

 

 

 

 

 

 

 

Number of U.K. Trading Days5

 

 

 

 

 

 

20

 

 

 

 

 

 

 

21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended December 31,

 

 

In millions (unaudited)

 

 

2022

 

 

2021

 

 

% Change

 

 

 

 

 

Volume

 

 

ADV

 

 

Volume

 

 

 

ADV

 

 

Volume

 

 

ADV

 

 

Credit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

High-grade

 

 

$

334,735

 

 

$

5,487

 

 

$

277,891

 

 

 

$

4,482

 

 

 

20.5

 

%

 

22.4

 

%

High-yield

 

 

 

110,091

 

 

 

1,805

 

 

 

84,004

 

 

 

 

1,355

 

 

 

31.1

 

 

 

33.2

 

 

Emerging markets

 

 

 

162,597

 

 

 

2,666

 

 

 

160,560

 

 

 

 

2,590

 

 

 

1.3

 

 

 

2.9

 

 

Eurobonds

 

 

 

98,853

 

 

 

1,569

 

 

 

74,817

 

 

 

 

1,169

 

 

 

32.1

 

 

 

34.2

 

 

Other credit1

 

 

 

31,404

 

 

 

515

 

 

 

7,131

 

 

 

 

115

 

 

 

340.4

 

 

 

347.8

 

 

Total credit trading2

 

 

 

737,680

 

 

 

12,042

 

 

 

604,403

 

 

 

 

9,711

 

 

 

22.1

 

 

 

24.0

 

 

Rates

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government Bonds3

 

 

 

1,099,596

 

 

 

18,026

 

 

 

1,183,410

 

 

 

 

19,087

 

 

 

(7.1

)

 

 

(5.6

)

 

Agency and other government bonds2

 

 

 

22,138

 

 

 

356

 

 

 

22,685

 

 

 

 

360

 

 

 

(2.4

)

 

 

(1.1

)

 

Total rates trading

 

 

 

1,121,734

 

 

 

18,382

 

 

 

1,206,095

 

 

 

 

19,447

 

 

 

(7.0

)

 

 

(5.5

)

 

Total trading

 

 

$

1,859,414

 

 

$

30,424

 

 

$

1,810,498

 

 

 

$

29,158

 

 

 

2.7

 

 

 

4.3

 

 

Number of U.S. Trading Days4

 

 

 

 

 

 

61

 

 

 

 

 

 

 

62

 

 

 

 

 

 

 

 

 

 

Number of U.K. Trading Days5

 

 

 

 

 

 

63

 

 

 

 

 

 

 

64

 

 

 

 

 

 

 

 

 

 

Table 2: Trading Volume Detail (continued)

 

 

 

 

 

Year-to-Date Ended December 31,

 

 

In millions (unaudited)

 

 

2022

 

 

2021

 

 

% Change

 

 

 

 

 

Volume

 

 

ADV

 

 

Volume

 

 

 

ADV

 

 

Volume

 

 

ADV

 

 

Credit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

High-grade

 

 

$

1,364,530

 

 

$

5,480

 

 

$

1,243,180

 

 

 

$

4,973

 

 

 

9.8

 

%

 

10.2

 

%

High-yield

 

 

 

424,812

 

 

 

1,706

 

 

 

371,116

 

 

 

 

1,484

 

 

 

14.5

 

 

 

15.0

 

 

Emerging markets

 

 

 

693,560

 

 

 

2,785

 

 

 

649,455

 

 

 

 

2,598

 

 

 

6.8

 

 

 

7.2

 

 

Eurobonds

 

 

 

362,713

 

 

 

1,451

 

 

 

334,899

 

 

 

 

1,324

 

 

 

8.3

 

 

 

9.6

 

 

Other credit1

 

 

 

99,225

 

 

 

398

 

 

 

26,134

 

 

 

 

105

 

 

 

279.7

 

 

 

279.0

 

 

Total credit trading2

 

 

 

2,944,840

 

 

 

11,820

 

 

 

2,624,784

 

 

 

 

10,484

 

 

 

12.2

 

 

 

12.7

 

 

Rates

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government Bonds3

 

 

 

5,347,607

 

 

 

21,476

 

 

 

4,074,451

 

 

 

 

16,298

 

 

 

31.2

 

 

 

31.8

 

 

Agency and other government bonds2

 

 

 

96,782

 

 

 

388

 

 

 

70,513

 

 

 

 

281

 

 

 

37.3

 

 

 

38.1

 

 

Total rates trading

 

 

 

5,444,389

 

 

 

21,864

 

 

 

4,144,964

 

 

 

 

16,579

 

 

 

31.3

 

 

 

31.9

 

 

Total trading

 

 

$

8,389,229

 

 

$

33,684

 

 

$

6,769,748

 

 

 

$

27,063

 

 

 

23.9

 

 

 

24.5

 

 

Number of U.S. Trading Days4

 

 

 

 

 

 

249

 

 

 

 

 

 

 

250

 

 

 

 

 

 

 

 

 

 

Number of U.K. Trading Days5

 

 

 

 

 

 

250

 

 

 

 

 

 

 

253

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Beginning January 2022, following the integration of the MuniBrokers platform, we are now including MuniBrokers variable commission related trading volume in other credit.

2 Consistent with FINRA TRACE reporting standards, both sides of trades are included in the Company's reported volumes when the Company executes trades on a matched principal basis between two counterparties.

3 Consistent with industry standards, U.S. Government Bond trades are single-counted.

4 The number of U.S. trading days is based on the SIFMA holiday recommendation calendar.

5 The number of U.K. trading days is based primarily on the U.K. Bank holiday schedule.

 

Contacts

INVESTOR RELATIONS

Stephen Davidson

MarketAxess Holdings Inc.

+1 212 813 6313

sdavidson2@marketaxess.com

MEDIA RELATIONS

Marisha Mistry

MarketAxess Holdings Inc.

+1 917 267 1232

mmistry@marketaxess.com

William McBride

RF | Binder

+1 917 239 6726

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